Policy Proposal : Tax Reform Package Essay
October 12, 2015
Policy Proposal: Tax Reform Package in Japan
Japan has remained in an extended period of stagnation for over a decade, since 1992, leading to a massive drop in per capita income. Consequently, the economy that stood to threaten the global markets in competition developed fragile pillars that affected the course of investments in the nation. As a member of the OECD area, Japan regained a steady growth trend after 2002 that saw a notable improvement in its GDP. Nonetheless, this upward course was reversed in the recent Great Depression that plagued the world markets in 2008. However, as the other countries picked themselves and wiped the economic dust, Japan also joined in this journey. However, today, the country is under threat from the turbulent settings observed in the international financial markets. The impact of the world economic recess interferes with the export industry in the Asian giant, which is a core source of revenue for the nation. Consequently, the stimulus for growth is stagnating again, leading to a slower development and poor monetary response. Thus, Japan as a country is in need of financial reforms.
The problem that is emanating from the outcome of the recent economic happenings in Japan is that the country`s public debt has remarkably reached 170% of its GDP. This record is the highest mark…